2. (10 points) If the government wants to reduce the budget deficit, how can the central bank keep the economy from going into a recession? Use the closed economy IS -LM model to illustrate graphically the impact of both the fiscal policy reducing the deficit and the monetary policy, which prevents output from falling. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shift; and v. the terminal equilibrium values